Clouds Linger for China Solar

These are dark days at Suntech Power Holdings, once the poster child for the expansion of China's solar industry. In 2011, Suntech shipped about 2.1 gigawatts, making it one of the biggest players in the sector. But a cyclical downturn that hammered demand and prices has put the firm into bankruptcy proceedings.

As Suntech's foreign bondholders scramble for repayment, China's solar sector is dividing into two camps. Suntech and other highly indebted firms are shrouded in darkness. LDK Solar has been in the red for six...